The dollar has had its day
The dollar’s day may well be over, at least as the sole refuge in hard economic times. As discussed in this article in the Financial Times, the dollar has been the currency of choice when times get tough for over fifty years, due in large part to the size of the US market and the strength of the financial sector. Now that financial sector is weak, and the strong Euro is quickly supplanting the dollar for major international transactions (as well as Giselle Bündchen photo shoots).
Now, the Euro has been increasingly served as an alternate currency in international transactions over the past few years, but the FT posits that the current economic troubles will be enough to earn it a pole position in the no-longer-new century. What do you think?
I think I’m glad the majority of our household income is in euros…
US policies of the past 8 years have taken it’s toll on the US economy. With the US about to enter a recession, growing US debt and a growing foreign trade gap, the dollar will not make a come-back any time soon. Whoever wins the presidency in November will have their hands full of issues to deal with and I doubt they will accomplish much in 4 years.
Indeed. In fact, I think the Democrats have to be wondering whether a McCain presidency would be the best thing for them, give that otherwise Clinton or Obama will be stuck with the unenviable job of cleaning things up.
That’s an interesting point – and one that has been floating around since 2004. The Reps likely see it that way as well – let McCain or a dem “take the blame” and then swoop in in 2012. If you look at the overall pool of candidates, it’s not unlikely.